10:22 PM,
Aug. 3, 2013

Generating income in retirement can be a challenge in today's market.

Written by

David J. Mazzetti
For the Poughkeepsie Journal

It's no secret that generating income in retirement is not as easy as it used to be.

We've experienced a dramatic decline in interest rates over the past 30 years. According to data published by the Federal Reserve Bank, a 10-year U.S. Treasury note (at constant maturity) yielded just under 11 percent in June 1983, 30 years ago. By June 1993, that same bond yielded 5.96 percent, and it kept trending lower to 3.33 percent 10 years ago in June 2003.

Yet today's yield on the 10-year Treasury, in the 2 percent range, pales in comparison. In other words, an individual investing $100,000 in a U.S. ...